News
Homeserve Acquires Improveline
16th December 2005
Concept’s Parent Company, Homeserve plc, today announces the expansion of its repair network activities with the acquisition of Recommend Limited trading as Improveline (’Improveline’) for an initial cash consideration of £14.0 million on a debt free and cash free basis. Further performance-related cash consideration of a total of up to £4.0 million is payable in 2007 and 2008.
Improveline is one of the UK’s leading home insurance repairers providing property repair services. Improveline currently has contractual arrangements with five leading household insurers. The company operates from a head office in Chiswick and six branches in the South East of England. The company has 320 employees including 155 directly employed trade operatives. For the year ended 31st December 2004, the audited accounts for Improveline reported profit before tax of £0.6 million on turnover of £15.4 million. For the ten months to 31st October 2005, the management accounts for Improveline reported a profit before tax of £1.2 million on turnover for the period of £23.1 million. Gross assets (including cash of £3.3 million) at 31st October 2005 were £9.3 million.
The acquisition of Improveline follows Homeserve’s purchase in December 2004 of Sergon BRM (now named Homeserve Property Repairs) and represents a further development of its property services offering. Improveline introduces new insurers to our property repairs business and offers synergies with our other Emergency Repair businesses allowing Homeserve to enhance its service to insurers by offering repairs completed through a directly controlled network of surveyors and tradesmen.
Richard Harpin, Chief Executive of Homeserve commented:
“The acquisition of Improveline is a significant step in the growth of our Emergency Repair operations. The acquisition extends our relationships with insurers in the property services market whilst bringing the benefit of a directly employed network.”